With just a few days left in June, it’s safe to say that bitcoin would require nothing short of a miracle to end the month in the green, as current data show a substantial 18% decline.

On-chain data depicts a few key factors behind BTC’s latest nosedive and what has to change for a stronger July.

Demand Lacks

In a recent post on X, popular analyst Ali Martinez explained that bitcoin accumulation levels have stalled for the past seven months.

“Bitcoin apparent demand has remained negative for 208 consecutive days, recently dropping to a new low of -273,000 BTC.”

The evident decline in this metric indicates that real spot market demand has fallen, as it compares new BTC creation to the movement of existing inventory. The trend change came after the massive liquidation event in early October, when over $19 billion was wiped out in a single day.

From November 9, 2025, to May 31, 2026, this demand “hovered quietly in negative territory between 0 and -150,000 BTC, indicating a mild but steady distribution of supply,” Martinez added. However, the metric plummeted to -273,000 BTC following the early and late June crashes and has “flatlined around this level.”

The metric remaining in negative territory for so long means a significant amount of old supply is entering circulation faster than the spot market can absorb it. This substantial divergence suggests that selling pressure continues to outpace new capital inflows, which is the first crucial factor that has to change for BTC to have a more robust and favorable July.

Just a few days ago, Martinez pointed to another metric showing no real demand for BTC but primarily from US investors. The Coinbase Premium remains deep in the red for nearly two months. More specifically, it went into negative territory after BTC peaked at over $82,000 in mid-May and has remained there ever since.

US institutional demand is key to bitcoin’s price moves and ranks as the second factor that has to change in July.

ETF Outflows

Aligned with the aforementioned developments, the spot Bitcoin ETFs have been on a massive withdrawal streak for weeks. The past week was no exception, as red dominated all days. On Thursday, the day BTC plummeted to $58,000 for the first time in almost two years, investors pulled out nearly $700 million from the funds.

Bitget Wallet’s Research Analyst Lacie Zhang told CryptoPotato that ETF outflows have to stabilize, and volatility will normalize after the massive options expiry event of $11 billion that took place on June 26.

“If redemptions resume and post-expiry positioning remains defensive, the market may stay choppy around current levels. The key point is that Bitcoin’s July direction may be shaped less by last week’s PCE print and more by how flows, leverage, and on-chain accumulation behave in the 72 hours after expiry settles,” she concluded.

Source: CryptoPotato